PUBLIC LAW 105-277—OCT. 21, 1998 112 STAT. 2681-724 and local governments to collect sales and use taxes owed on in-State purchases from out-of-State sellers; and (F) the examination of ways to simplify Federal and State and local taxes imposed on the provision of telecommunications services. (3) EFFECT ON THE COMMUNICATIONS ACT OF 1934.—Nothing in this section shall include an examination of any fees or charges imposed by the Federal Communications Commission or States related to— (A) obligations under the Communications Act of 1934 (47 U.S.C. 151 et seq.); or (B) the implementation of the Telecommunications Act of 1996 (or of amendments made by that Act). (h) NATIONAL TAX ASSOCIATION COMMUI^ICATIONS AND ELEC- TRONIC COMMERCE TAX PROJECT.— The Commission shall, to the extent possible, ensure that its work does not undermine the efforts of the National Tax Association Communications and Electronic Commerce Tax Project. SEC. 1103. REPORT. Not later than 18 months after the date of the enactment of this Act, the Commission shall transmit to Congress for its consideration a report reflecting the results, including such legislative recommendations as required to address the findings of the Commission's study under this title. Any recommendation agreed to by the Commission shall be tax and technologically neutral and apply to all forms of remote commerce?. No finding or recommendation shall be included in the report: unless agreed to by at least two-thirds of the members of the Commission serving at the time the finding or recommendation is made. SEC. 1104. DEFINITIONS. For the purposes of this title: (1) BIT TAX. —The term "bit tax" means any tax on electronic commerce expressly imposed on or measured by the volume of digital information transmitted electronically, or the volume of digital information per unit of time transmitted electronically, but does not include taxes imposed on the provision of telecommunications services. (2) DISCRIMINATORY TAX.— The term "discriminatory tax" means— (A) any tax imposed by a State or political subdivision thereof on electronic commerce that— (i) is not generally imposed and legally collectible by such State or such political subdivision on transactions involving similar proper1:y, goods, services, or information accomplished through other means; (ii) is not generally imposed and legally collectible at the same rate by such State or such political subdivision on transactions involving similar property, goods, services, or information accomplished through other means, unless the rate is lowei' as part of a phaseout of the tax over not more than a 5-year period; (iii) imposes an obligation to collect or pay the tax on a different person or entity than in the case of transactions involving similar property, goods, services, or information accomplished through other means;
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